Philippine inflation accelerates to 14-year high, could a rate increase be on the horizon?
- Consumer prices rose 8 per cent from a year ago last month, the quickest since the 9.1 per cent pace logged in November 2008, according to data
- Philippine central bank raised rates six times this year, and its governor last week flagged another 25 or 50 basis points hike for December 15 meeting
Consumer prices rose 8 per cent from a year ago last month, the Philippine Statistics Authority reported Tuesday, faster than the 7.8 per cent median estimate in a Bloomberg survey. That is also the quickest since the 9.1 per cent pace logged in November 2008, according to compiled data.
Price growth averaged 5.6 per cent in the January-to-November period, way above the central bank’s 2-4 per cent target for 2022. Core inflation, which strips out volatile food and fuel items, rose 6.5 per cent from a year ago last month.
Bangko Sentral ng Pilipinas “remains prepared to take all further monetary policy actions necessary” to bring inflation back to its target in the medium term, it said in a statement after the data release.
Inflation peak
While risks to the inflation outlook remains titled to the upside for 2023, price growth is seen to decelerate in the coming months, BSP said. Monetary authorities were reassured of timely non-monetary actions by the government to cool persistent supply-side pressures, it said.